Question:
Our HOA assessments and Capital contributions have gone up every year since 2022 without a vote, which is required; same with budget. Which entity do I submit this matter to be resolved or investigated? Some of us have complained to the HOA Board but nothing changed. Lastly, it has come to my attention that the HOA’s Property Management Company violated their contract. They have paid vendors and credit card bills late, trickling down the cost to the homeowners. They already were fined in 2021 for Charging Residents with Disabilities for Reserved Parking. Can the homeowners go after the HOA for breach of contract for keeping this PM company? Are they permitted to raise the HOA every year in Pennsylvania.
Thank you for your time.
– Nicole
Answer:
Hi Nicole,
According to the Pennsylvania Uniform Planned Community Act Section 5303(b), the unit owners, by a majority or any larger vote specified by the declaration, may reject any budget or capital expenditure approved by the executive board within 30 days after approval.
This suggests that the budget and capital expenditures may only require board approval. Kindly double-check the governing documents to verify whether budgets and capital expenditures require membership approval instead of only board approval.
If the board has violated the governing documents, you may raise this with the HOA board at a board meeting. However, if the governing documents do not require membership approval for the budget, the assessment increases may have been valid if they were not rejected within 30 days after board approval.
As for the management company, kindly review the management contract to verify whether or not this is indeed a breach of contract. The contract may also specify consequences or damages should any party breach the contract. You may raise these with the HOA board.
If the board refuses to comply with the governing documents or deal with the management company properly, you may engage in dispute resolution to resolve the conflict. Alternatively, you may also remove the problem board member(s) according to the Pennsylvania Uniform Planned Community Act Section 5303(f), which states that members may remove any board member (except a developer-appointed board member) by a two-thirds vote of all persons present and entitled to vote at any meeting of the unit owners with a quorum. For further guidance, kindly consult a lawyer.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
